Developments in Tax and
Business
Towns Mandating ENERGY STAR as Code
Here’s a trend worth watching if you are a homebuilder: Some municipalities
are requiring that every new home built in their communities be
ENERGY STAR
compliant. (ENERGY STAR is a joint program of the U.S. Environmental
Protection Agency (EPA) and the U.S. Department of Energy.) Reactions to the
requirement are mixed, with some homebuilders’ associations supporting the
measure and others opposing it on the grounds of cost.
Employment-Tax Audits Coming Your Way
Contractors should be aware that the IRS plans to launch a new audit program
targeted at federal employment-tax returns. While the IRS intends to examine
all lines on the returns, it says that it will focus on fringe benefits,
reimbursed expenses, the classification of workers (employee versus
independent contractor) and officer compensation.
Buy New and Save Taxes
Contractors who have plans to buy a vehicle this year for business use could
save taxes if they buy a new vehicle instead of a used one. The maximum
first-year deduction for depreciation or Section 179 expensing for a
business-use-only new luxury car purchased in 2009 is $10,960, compared to
$2,960 for a used vehicle. The maximum write-off for a new light truck or
van is $11,060, whereas it’s $3,060 for a used vehicle.
Work-In-Process is provided by
Somerset for our clients and other interested persons upon request.
Since technical information is presented in generalized fashion, no
final conclusion on these topics should be made without further review.
For additional information on the issues discussed,
please contact
Ken
Hedlund,
Jay Feller,
Steve George,
Chris
Mayfield or
Rebecca Ogle
of our
Construction & A/E Team.
This document is not intended or written to be used, and cannot be used,
for the purpose of avoiding tax penalties that may be imposed on the
taxpayer.
Somerset CPAs,
P.C.
3925 River Crossing Parkway, Third Floor
Indianapolis, Indiana 46240
317.472.2200 • 800.469.7206 • FAX 317.208.1200
www.IndianaConstructionCPAs.com
info@somersetcpas.com
